AC Energy (ACEN) is lending up to Php1 billion to Solar Philippines to finance its various land acquisitions for its solar power projects.
In a disclosure to the Philippine Stock Exchange on Monday, the Ayala-led firm said it signed an Omnibus Loan and Security Agreement with Solar Philippines affiliate Provincia Investments Corporation on Friday.
“The loan will be secured by (1) a real estate mortgage over [Provincia’s] and third-party mortgagors’ title to, or rights and interests over, real assets in favor of the Company, and (2) a mortgage and pledge over the shareholding of [Solar Philippines] in one of its fully-owned subsidiaries,” the disclosure read.
Solar Philippines’ loan from AC Energy forms part of their joint venture, which was announced last January. Under the partnership, ACEN invested in Solar Philippines subsidiary Solar Philippines Central Luzon Corporation to develop solar projects across the country, mostly in Central Luzon.
AC Energy said, however, that this does not include Solar Philippines’ 500-megawatt (MW) solar farm in Penaranda, Nueva Ecija. Construction of the said facility, which to-date is the biggest solar venture in Southeast Asia, would begin with that of a 225MW facility — currently the country’s biggest solar power project.